It's quite possible that the acquisition of Hutch-Essar by Vodafone could get delayed. That's because a lot of questions are being asked about the shareholding pattern in Hutch-Essar. On one side Hutch is talking of selling it's 67% stake in Hutch-Essar. That's 52% held by Hutchison directly and another 15% held by Asim Ghosh and Analjit Singh. But, on the other hand, the 74% foreign equity in Hutch Essar is accounted for by Hutch's 52% and Essar's 22% through Mauritius.
Now that makes the maths all the more complicated. So, is the foreign stake in Hutch Essar at 74% or 89%? That's what the Delhi High Court will hear based on a public interest litigation (PIL) filed by consumer group Telecom Watchdog's Prashant Bhushan. He is categorical that Hutch Essar's licence is liable to be cancelled. Or, the 15% shares should be confiscated.
But if one jogs one's memory, the shareholding pattern of Hutchison Max (as it was called in the mid-90s) was always suspect. So can one expect any action on Hutch Essar? Seems unlikely.
But, in case the entire issue meanders its way through court, operators like Bharti and IDEA Cellular will gain. BSNL is still stuck in its expansion plans thanks to the case filed by Motorola.
So, who is behind Telecom Watchdog? That could decide how long this case will continue.
No comments:
Post a Comment